Alliance trust hits back at Laxey over DCM

Alliance trust has hit back at activist investor Laxey Partners and rejected calls for the introduction of a discount control mechanism (DCM), in the company's annual results, released today.

Yesterday Laxey claimed Alliance trust is "terrified" to reveal its total expense ratio to shareholders. In the latest swipe in a long-running dispute with the £2.8bn trust's board, Laxey argued investors are unaware of the trust's soaring expenses, which it says have risen 145% over the last five years, and are the reason Alliance is refusing to introduce a discount control mechanism. But the Alliance trust board says today reining in the discount from 17% to 10% will only benefit "short-term investors", who are seeking to make a quick gain if the discount narrows. Alliance adds i...